Follow us

Account

Visa calls $400m media review

Incumbents OMD and Mediaedge:cia will repitch following the credit-card's decision to consolidate.

Visa is reviewing its estimated $400 million global media
planning and buying business with the intention of consolidating into
one network.

The incumbents, OMD and Mediaedge:cia, will compete for the business,
but it is unclear if rival networks will be invited to join the
process.

OMD handles Visa's business in North America, which accounts for the
vast bulk of Visa's global spend. It also handles the account in Asia,
while Mediaedge:cia is responsible for the Visa Europe business,
including the £5 million UK account.

John Elkins, Visa International's executive vice-president, global
brand, marketing and corporate communications, is leading the
process.

Visa has previously run a complicated corporate structure with Visa USA,
Visa Canada, Visa Europe and Visa International all operating
separately. However, it is in the process of simplifying this by
creating one global corporation called Visa Inc. Some complications will
remain because Visa Europe will stay as a membership association
controlled by European member banks.

However, the changes have encouraged Visa to explore the benefits of
media consolidation. It said when it announced the restructure last
October that it would "combine the efficiencies of global scale with the
recognition of Europe's unique business and economic environment".

Visa's creative agency arrangements are thought to be unaffected by the
media review. Saatchi & Saatchi handles work across Europe, while
TBWA\Chiat\Day is the incumbent in the US. Its European advertising has
focused on the theme of "love every day" to persuade consumers to use
their cards for everyday items as well as indulgences.

In addition to making greater use of online and print ads, Visa remains
committed to its Olympic sponsorship programme and its spend is expected
to increase in 2008 for the Beijing Olympics.